Allegro MicroSystems, Inc. (NASDAQ:ALGM) Stock Has Average Target Price of $51.58 According to Brokerages

Shares of Allegro MicroSystems, Inc. (NASDAQ:ALGM) have been given a consensus rating of “Moderate Buy” by the thirteen analysts that are currently covering the company, MarketBeat reports. One analyst has rated the stock with a sell recommendation, one has issued a hold recommendation, ten have assigned a buy recommendation and one has issued a strong buy recommendation on the company. The average 1-year target price among analysts that have covered the stock in the last year is $49.33.

ALGM has been the subject of a number of recent analyst reports. Wells Fargo & Company lowered their price target on Allegro MicroSystems from $45.00 to $40.00 and set an “overweight” rating for the company in a research note on Friday. Weiss Ratings cut shares of Allegro MicroSystems from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Friday, October 23rd. Barclays reduced their price target on shares of Allegro MicroSystems from $48.00 to $45.00 and set an “equal weight” rating on the stock in a research report on Friday. Wall Street Zen raised shares of Allegro MicroSystems from a “hold” rating to a “buy” rating in a report on Sunday, August 2nd. Finally, TD Cowen lowered their price target on Allegro MicroSystems from $48.00 to $40.00 and set a “buy” rating for the company in a report on Monday, October 19th.

Allegro MicroSystems Trading Down 7.6%

NASDAQ ALGM opened at $30.53 on Wednesday. The stock has a 50-day simple moving average of $35.09 and a 200 day simple moving average of $40.66. The company has a market capitalization of $5.69 billion, a PE ratio of 203.55, a P/E/G ratio of 1.04 and a beta of 1.99. The company has a current ratio of 4.13, a quick ratio of 2.33 and a debt-to-equity ratio of 0.28. Allegro MicroSystems has a 12 month low of $22.41 and a 12 month high of $71.77.

Allegro MicroSystems (NASDAQ:ALGM) last released its earnings results on Thursday, October 29th. The company reported $0.26 earnings per share for the quarter, beating the consensus estimate of $0.24 by $0.02. Allegro MicroSystems had a return on equity of 10.34% and a net margin of 3.07%. The firm had revenue of $276.88 million for the quarter, compared to analyst estimates of $270.86 million. During the same quarter in the prior year, the firm posted $0.13 earnings per share. The company’s quarterly revenue was up 29.2% on a year-over-year basis. Research analysts forecast that Allegro MicroSystems will post 0.65 EPS for the current year.

Key Stories Impacting Allegro MicroSystems

Here are the key news stories impacting Allegro MicroSystems this week:

• Positive Sentiment: Allegro reported second-quarter fiscal 2027 revenue of approximately $277 million, up 29% year over year and ahead of the roughly $271 million consensus estimate. Adjusted earnings were $0.26 per share, exceeding expectations, while GAAP EPS quadrupled and non-GAAP EPS doubled from the prior-year period. Allegro MicroSystems Reports Second Quarter 2027 Results
• Positive Sentiment: Management highlighted record sales in industrial and other markets and data centers, along with improving inventory levels, stronger demand signals and ongoing design wins. These trends support the longer-term growth outlook, particularly in electrification, automation and data-center applications. ALGM Q3 Deep Dive
• Neutral Sentiment: Analysts remain broadly constructive, but several firms reduced their targets after the results: Wells Fargo to $40 from $45, UBS to $48 from $50, Barclays to $45 from $48, Mizuho to $46 from $58 and Needham to $50 from $57. Ratings remained positive or neutral, indicating expectations were reset rather than fully reversed. Analysts Cut Their Forecasts on Allegro MicroSystems
• Negative Sentiment: The stock’s decline reflects concerns that near-term demand may not be strong enough to justify prior valuation assumptions. Investors are also weighing capacity constraints, the pace of recovery across end markets and the possibility that the earnings beat will not translate into a materially higher outlook. Allegro MicroSystems Sinks Despite Earnings Beat

Insider Activity

In other Allegro MicroSystems news, SVP Erin Hagen sold 2,285 shares of Allegro MicroSystems stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $44.39, for a total value of $101,431.15. Following the transaction, the senior vice president owned 31,052 shares of the company’s stock, valued at approximately $1,378,398.28. The trade was a 6.85% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Corporate insiders own 0.50% of the company’s stock.

Hedge Funds Weigh In On Allegro MicroSystems

Large investors have recently added to or reduced their stakes in the company. BlackRock Inc. bought a new position in Allegro MicroSystems in the second quarter valued at $966,975,000. Bank of America Corp DE acquired a new stake in Allegro MicroSystems in the 2nd quarter valued at $64,171,000. Bank of New York Mellon Corp bought a new stake in Allegro MicroSystems during the 2nd quarter worth about $49,914,000. Braun Stacey Associates Inc. bought a new stake in Allegro MicroSystems during the 2nd quarter worth about $25,515,000. Finally, S Squared Technology LLC acquired a new position in shares of Allegro MicroSystems during the 2nd quarter worth about $23,145,239. Institutional investors own 56.45% of the company’s stock.

About Allegro MicroSystems

Allegro MicroSystems, Inc is a semiconductor company that develops and manufactures magnetic sensing and power-management solutions. Its products are designed to help monitor motion, position, speed, current and temperature, as well as control power in electronic systems.

The company’s portfolio includes Hall-effect and other magnetic sensors, current sensors, motor drivers, regulators, LED drivers and related integrated circuits. These products are used in automotive applications such as advanced driver-assistance systems, vehicle electrification, powertrain systems, comfort features and safety systems, as well as in industrial and consumer equipment.

Founded in 1990 and headquartered in Manchester, New Hampshire, Allegro serves customers globally through its international operations and distribution network.